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Partnerships Act of 1963

1. Legal relationship Between Denice and Emily:

Section 6 of the Partnership Act of 1963 states defines Partnership. According to Section 6 of the act, a partnership is a relationship between a person for carrying a business with a common intention of running a business and earning profit. The relationship between members of the corporation that are incorporated outside the act does not form a partnership. Section 7 of the Act prescribes the rules which determine whether there is an existence of a partnership or not. So, the rules which determine the same are as follows: -

• A joint property or a joint tenancy should be there in common to create a partnership between a person as to anything which is held or owed.

• The person must share profit with the other person whether the person has a joint interest or not, it is the duty of the other person to provide him with the share.[1....